Title: Subsidy policies with capital accumulation: maintaining employment levels.

POPLINE Document Number: 208293

Author(s):

Dutta B
Gang IN
Gangopadhyay S

Source citation:

JOURNAL OF POPULATION ECONOMICS, 1989 Dec;2(4):301-18.

Abstract:

The authors study a dual economy model of growth and unemployment in the presence of Harris-Todaro type labor migration. The model is a discrete time model of economic growth with a given population but endogenous migration of labor. The economy tries to reach development in the quickest possible time while not allowing unemployment to rise above a socially acceptable level. The authors also characterize situations under which maximizing the accumulation of capital in each period is optimal and study how particular taxes and subsidies affect unemployment and capital accumulation. Finally, they show that a higher initial capital stock does not necessarily mean a quicker attainment of self- sustained full employment. (author's)

Keywords:

Developing Countries
Mathematical Model
Unemployment
Labor Migration
Economic Conditions
Government
Commerce
Employment
Capital
Models, Theoretical
Research Methodology
Macroeconomic Factors
Economic Factors
Migration
Population Dynamics
Demographic Factors
Population
Political Factors